Procedure for liquidating a company

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If a resolution is passed in favour of the winding up, the company will appoint a liquidator, subject to any preference the creditors may have as to the choice of liquidator.

Compulsory winding up Under section 253 of the Companies Act (Cap.

A creditor must complete execution before the winding up application has been presented. For example, goods under a writ of seizure and sale must be seized and sold; garnishee proceedings are completed on receipt of the debt.

Landlords may not distrain for rent after the winding up application has been presented.

A company may, voluntary wind up its affairs, if it is unable to carry on its business, or if it was formed only for a limited purpose, or if it is unable to meet its financial obligation, and etc.

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c) Execution proceedings After a winding up application has been presented, no creditor is allowed to take out or continue attachment or execution proceedings against the company.50), the company itself, creditors, contributories, liquidator, judicial manager or the Minister may present a winding up application to the High Court.The applicant has to pay a winding up deposit of ,400 to the Official Receiver, and the Court may appoint the Official Receiver or an approved liquidator as the liquidator of the company.(502)In case, the winding up procedure, takes more than one year, then he will have to call a general meeting, and meeting of creditors, at the end of each year, and he shall present, a complete account of the procedure, and the status / position of liquidation (505).If from the report, official liquidator comes to the conclusion, that affairs of the company are not being carried in manner prejudicial to the interest of its members or public, then the company shall be deemed to be dissolved, from the date of report to the court.

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